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Hulic REIT to buy 3 Tokyo properties for ¥15.25B

Hulic Reit Inc. plans to acquire real estate trust beneficiary rights in three properties in Tokyo from Hulic Co. Ltd. for ¥15.25 billion.

The company will also transfer its entire ownership of Leaf Minatomirai (Land) retail property at Yokohama-shi, Kanagawa Prefecture to Hulic Co. for ¥13.10 billion.

The properties to be bought comprise the 1,927.55-square-meter HULIC &New SHINBASHI retail property in Minato-ku, Tokyo, with anticipated acquisition price of ¥3.10 billion; the 6,442.86-square-meter Sotetsu Fresa Inn Ginza 7 Chome in Chuo-ku, Tokyo, to be bought for ¥7.15 billion; and the 4,758-square-meter Sotetsu Fresa Inn Tokyo-Roppongi in Minato-ku, Tokyo, with a price tag of ¥5.00 billion.

Separately, the company announced it plans to issue new investment units and use a portion of the estimated proceeds of up to ¥10.1 billion to fund the acquisition, which is expected to occur Nov. 1. The remainder of the proceeds will be used to repay borrowings or for a cash reserve.

The issuance comprises a primary public offering of 61,800 units, a secondary offering 3,200 units through overallotment, and an offering of a further 3,200 units through third-party allotment, according to a release.

The units will be priced on a date between Oct. 24 and Oct. 26, while the payment date will be between Oct. 31 and Nov. 2.

Mizuho Securities Co. Ltd., Nomura Securities Co. Ltd. and Daiwa Securities Co. Ltd. will act as joint lead managers for the offering, and together with SMBC Nikko Securities Inc., Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. and Okasan Securities Co. Ltd. will act as the underwriters.

As of Oct. 12, US$1 was equivalent to ¥112.30.